The failure of Carillion
If you are a supplier of Carillion you are probably in shock at learning about its collapse and the appointment of PWC as Special Managers. You are probably wondering what to do.
The collapse of a large contractor can mean the end of the road for some businesses. If Carillion contracts constitute a large portion of your company income, or if you’re a creditor whose cashflow will be impacted, we have options to steer you out of the uncertainty no matter what your situation.
The best course of action is to speak with one of our friendly advisors who can assess your business and guide you on the best course of action to take.
The first issue to come to terms with is that it is likely that you will have to write off any historical money owing to you. Certainly, in the short term you will not be paid.
The immediate problems you could face are:
- Acute cash shortage
- Dealing with creditors – suppliers, HMRC, etc
- Paying wages
- Threats of legal action, bailiffs, etc
- Concern about the bank and possibly losing your home
How can Wilson Field help with company debt?
A company can quickly find its debt spiralling out of control. Wilson Field is a firm of licensed insolvency practitioners with years of experience resolving company debt issues for firms of all sizes. Our staff will work with you to in order to fully understand your company’s current situation and guide you through available courses of action. A thorough analysis will take place to establish whether there is a possibility of rescuing the company, or if it needs putting it to bed in order to make repayments to creditors. Wilson Field’s team is fully qualified to carry out a range of recovery and insolvency procedures, meaning you will be guided from start to finish and expert advice will always be on hand.
Options available to reduce Company Debt
Wilson Field have a number of options available in order to reduce company debt. For more information, click through to the relevant page or contact us directly.
If as a result of Carillion, your company debt has spiralled out of control and your business is threatening to collapse under creditor pressure, administration is a powerful tool that Wilson Field can help put in place in order to get the situation under control. Administration will halt all pending creditor action and prevent them taking any further steps to reclaim their monies. It will also give Wilson Field the opportunity to thoroughly analyse your company’s situation and devise the ideal rescue or recovery solution.
Read more about Company Administration or Pre Pack Administration.
Creditors Voluntary Liquidation (CVL)
If company debt has reached levels where the chances of recovery are slim, a creditors voluntary liquidation could provide the ideal way to halt further losses to creditors and help reduce the possibility of wrongful trading action being brought against directors. A CVL will mean the end of a company and its debt, but not necessarily the demise of a business.
Read more about Creditors Voluntary Liquidations (CVL).
Company Voluntary Arrangements (CVA)
Company Voluntary Arrangements could be a viable rescue device for directors who feel that a company has a future and are prepared to work hard in order to save it. A CVA involves a company making contribution payments to a licensed insolvency practitioner over a period of time based upon what the company can afford. The insolvency practitioner then distributes this money to creditors on a pro rata basis and following the final distribution, the company is discharged from the CVA. The company can then carry on trading unencumbered from its previous liabilities.
Read more about Company Voluntary Arrangements (CVA).
Time to Pay Arrangements (TTP)
For a company struggling with HM Revenue & Customs arrears (HMRC), a Time to Pay Arrangement could provide rescue by allowing repayments to be made in instalments rather than all at once. This will free up cash flow for the day to day running of a business and allow a company to continue trading. HMRC are most likely to accept a TTP proposal if they feel confident that the arrangement will be correctly managed and the repayments will be honoured. Wilson Field have built up a wealth of experience dealing with the tax office and have developed strong working relationships over time. Wilson Field are able to approach HMRC on a company’s behalf in order to negotiate a structured repayment plan. This will be completely free of charge if HMRC refuse to accept the proposal, at which point your company’s current situation can be re-investigated and an alternative solution sourced.
Read more about Time to Pay arrangements (TTP).
Raising finance or restructuring existing finance may help you through this difficult situation. Obviously, it is important that your underlying business is sound and viable moving forward.
It may be possible to release cash tied up in fixed assets whilst retaining the use of them by using asset finance products. In some cases invoice financing, sourcing investment, financial restructuring and consolidation through loans will all be considered.
If your business operates from owned premises we can help re-mortgage it to release cash and perhaps spread payments over a longer period to ease cash flow.
In some instances, it may be appropriate to reduce company debt through the introduction of capital or investment into the business. There are a variety of ways in which Wilson Field can help you to do this and the options available depend on the individual circumstances surrounding a company.
View our other site on refinancing and funding options.
Wilson Field offer a fast and efficient service with nationwide coverage from a network of regional offices, meaning a free consultation can be arranged at a time and location most convenient to you.
If you’re the director of a company owed money by the Carillion group, get in touch today to arrange a free confidential consultation with no obligation.
Book a free telephone consultation with one of our initial advisers